The Office of Management and Budget's Acquisition Workforce Development Strategic Plan for Civilian Agencies
Gao ID: GAO-10-459R April 23, 2010The President acknowledged that many federal contracting arrangements do not serve the needs of the federal government or the interests of the American taxpayer in a March 2009 memorandum. Among many of the issues discussed, the memorandum states that the government needs to ensure that it has the workforce needed to carry out robust and thorough management and oversight of contracts to achieve programmatic goals, avoid significant overcharges, and curb wasteful spending. However, the capacity and the capability of the federal government's acquisition workforce to oversee and manage contracts have not kept pace with increased spending for increasingly complex purchases. For example, federal civilian agencies' acquisition spending increased in real terms from $80 billion to $138 billion between fiscal year 2000 and fiscal year 2008, while their acquisition workforce grew at a considerably lower rate. Furthermore, 55 percent of the current acquisition workforce will be eligible to retire in 2018--more than twice the number eligible in 2008-- which creates potential future skill shortages. To help address the challenges faced in the federal contracting environment, the President's fiscal year 2011 budget identifies the development of the federal acquisition workforce as a priority investment with $158 million requested to support that investment. To help agencies develop plans to increase the size of the acquisition workforce, Congress enacted section 869 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (NDAA 2009). This provision directs the Office of Management and Budget (OMB) to prepare a plan--the Acquisition Workforce Development Stategic Plan (plan)-- for federal agencies other than the Deparment of Defense to develop a specific and actionable 5-year plan to increase the size of the acquisition workforce and operate a governmentwide acquisition intern program. Section 869 outlined a number of matters that the plan was to include, such as the development of a sustainable funding model to support efforts to hire, retain, and train an appropriately sized and skilled acquisition workforce. In response, OMB issued its plan for civilian agencies on October 27, 2009. The plan, according to OMB, provides a structured approach for these agencies to augment and improve the skills of their acquisition workforce, which includes contract specialists, contracting officer's technical representatives (COTR), and program and project managers (P/PM). A key element of the plan is the requirement for each civilian agency covered by the Chief Financial Officers Act to submit an annual Acquisition Human Capital Plan (AHCP) to OMB by March 31, 2010 that identifies specific strategies and goals for increasing both the capacity and capability of its respective acquisition workforce for the period ending in fiscal year 2014 and requires agencies to use this information to address acquisition workforce needs in their annual budget submissions. In addition, section 834 of the National Defense Authorization Act for Fiscal Year 2010 (NDAA 2010) directs GAO to report on OMB's plan 180 days after its issuance. As part of this mandate, GAO is to assess matters it considers appropriate with respect to OMB's plan, as well as several other matters not required of OMB under section 869, such as the extent to which OMB's plan considered agencies' use of contractor personnel to supplement the acquisition workforce. The mandate also requires GAO to assess the methodology OMB used to formulate the plan and the feasibility of the plan's recommendations and associated time frames. Accordingly, we are reporting on (1) the extent to which the plan addressed the matters specified in section 869 of the NDAA 2009 and those identified in section 834 of the NDAA 2010 and (2) the methodologies OMB used to formulate the plan's recommendations and the feasibility of the recommendations and associated time frames.
While OMB's plan does not address all statutory matters, it nevertheless has initiated a process that provides an opportunity to increase the capacity and capability of the civilian agencies' acquisition workforce. As agencies submit their AHCPs and they are reviewed by OMB to inform budgetary decisions, issues such as defining and obtaining data on the entire acquisition workforce, which includes contractors who support acquisition functions, will become increasingly important and may warrant clarification. Additionally, through subsequent years, the results of the process established in OMB's plan will become evident, including how well it identifies gaps and responds to critical needs in the civilian acquisition workforce and the sustainability of funding for the effort. The ability of OMB and the agencies to address issues that need refinement and ultimately achieve the intended outcomes of the plan will depend on their sustained collaboration and commitment to developing the acquisition workforce.
GAO-10-459R, The Office of Management and Budget's Acquisition Workforce Development Strategic Plan for Civilian Agencies
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GAO-10-459R:
United States Government Accountability Office:
Washington, DC 20548:
April 23, 2010:
Congressional Committees:
Subject: The Office of Management and Budget's Acquisition Workforce
Development Strategic Plan for Civilian Agencies:
The President acknowledged that many federal contracting arrangements
do not serve the needs of the federal government or the interests of
the American taxpayer in a March 2009 memorandum.[Footnote 1] Among
many of the issues discussed, the memorandum states that the
government needs to ensure that it has the workforce needed to carry
out robust and thorough management and oversight of contracts to
achieve programmatic goals, avoid significant overcharges, and curb
wasteful spending. However, the capacity and the capability of the
federal government's acquisition workforce to oversee and manage
contracts have not kept pace with increased spending for increasingly
complex purchases. For example, federal civilian agencies' acquisition
spending increased in real terms from $80 billion to $138 billion
between fiscal year 2000 and fiscal year 2008, while their acquisition
workforce grew at a considerably lower rate. Furthermore, 55 percent
of the current acquisition workforce will be eligible to retire in
2018--more than twice the number eligible in 2008--which creates
potential future skill shortages. To help address the challenges faced
in the federal contracting environment, the President's fiscal year
2011 budget identifies the development of the federal acquisition
workforce as a priority investment with $158 million requested to
support that investment.
To help agencies develop plans to increase the size of the acquisition
workforce, Congress enacted section 869 of the Duncan Hunter National
Defense Authorization Act for Fiscal Year 2009 (NDAA 2009).[Footnote
2] This provision directs the Office of Management and Budget (OMB) to
prepare a plan--the Acquisition Workforce Development Strategic Plan
(plan)--for federal agencies other than the Department of Defense to
develop a specific and actionable 5-year plan to increase the size of
the acquisition workforce and operate a governmentwide acquisition
intern program. Section 869 outlined a number of matters that the plan
was to include, such as the development of a sustainable funding model
to support efforts to hire, retain, and train an appropriately sized
and skilled acquisition workforce (see appendix I for the matters
specified in section 869). In response, OMB issued its plan for
civilian agencies on October 27, 2009.[Footnote 3] The plan, according
to OMB, provides a structured approach for these agencies to augment
and improve the skills of their acquisition workforce, which includes
contract specialists, contracting officer's technical representatives
(COTR), and program and project managers (P/PM).[Footnote 4] A key
element of the plan is the requirement for each civilian agency
covered by the Chief Financial Officers Act[Footnote 5] to submit an
annual Acquisition Human Capital Plan (AHCP) to OMB by March 31, 2010
that identifies specific strategies and goals for increasing both the
capacity and capability of its respective acquisition workforce for
the period ending in fiscal year 2014 and requires agencies to use
this information to address acquisition workforce needs in their
annual budget submissions.
In addition, section 834 of the National Defense Authorization Act for
Fiscal Year 2010 (NDAA 2010) directs GAO to report on OMB's plan 180
days after its issuance.[Footnote 6] As part of this mandate, GAO is
to assess matters it considers appropriate with respect to OMB's plan,
as well as several other matters not required of OMB under section
869, such as the extent to which OMB's plan considered agencies' use
of contractor personnel to supplement the acquisition workforce (see
app. I for matters specified in section 834). The mandate also
requires GAO to assess the methodology OMB used to formulate the plan
and the feasibility of the plan's recommendations and associated time
frames. Accordingly, we are reporting on (1) the extent to which the
plan addressed the matters specified in section 869 of the NDAA 2009
and those identified in section 834 of the NDAA 2010 and (2) the
methodologies OMB used to formulate the plan's recommendations and the
feasibility of the recommendations and associated time frames.
To address these objectives, we compared OMB's plan against the
required elements of sections 869 and 834 and discussed how those
elements were addressed in the plan with personnel from OMB's Office
of Federal Procurement Policy (OFPP) who were responsible for
formulating the plan. Additionally, we conducted a literature review
of existing reports, policies, and laws related to acquisition
workforce development to inform our assessment of the extent to which
OMB considered these items in its plan. Finally, we interviewed
acquisition workforce managers at nine federal agencies and the
Federal Acquisition Institute (FAI)[Footnote 7] about their
perceptions of the plan, their involvement in its formulation, and the
feasibility of implementing its recommendations within the associated
time frames. The nine agencies were selected based on contract award
obligations from fiscal year 2009 and their involvement in the
development of OMB's plan, ensuring we had a mix of agencies with a
range of obligation amounts and interaction with OMB.[Footnote 8] We
conducted this audit from November 2009 through April 2010 in
accordance with generally accepted government auditing standards.
Those standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe
that the evidence obtained provides a reasonable basis for our
findings and conclusions based on our audit objectives.
Summary:
OMB's plan for civilian agencies' acquisition workforce addresses
several, but not all, of the matters it was required to address under
section 869. While OMB officials acknowledge that the plan does not
explicitly address all of the required matters, they believe that it
nevertheless provides, for the first time, a governmentwide framework
for civilian agencies to conduct agency-specific acquisition workforce
planning. For example, section 869 requires that the plan include an
examination of the development of a sustainable funding model for the
acquisition workforce. While a funding model is not explicitly
described in the plan, OMB officials explained that the plan
establishes a process that will serve as a component of agencies'
annual budget submissions. As such, the plan creates a basis for
sustainable funding, provided that agency budget requests are
justified by their AHCPs and identified needs are funded.
Additionally, the plan was to examine the appropriateness of growing
the acquisition workforce by 25 percent over the next 5 years.
However, OMB's plan only specifies 5 percent growth for fiscal year
2011. OMB officials informed us that they did not project growth
through 2014 because a 5 percent annual growth rate may not be
applicable to all agencies based on their governmentwide analysis of
acquisition workforce growth in fiscal years 2008 and 2009. They
further stated that individual agency growth rates will likely be
adjusted based on the data submitted as part of the AHCPs. OMB's plan
also does not appear to comprehensively address several additional
elements that GAO was directed to review but that OMB was not
specifically mandated to include in the plan. For example, there is
neither a specific discussion in the plan of the use of contractor
personnel to supplement the agencies' acquisition workforce nor a
discussion of the full range of laws, regulations, and policies that
currently apply to the acquisition workforce. OMB officials explained
that many of these issues were analyzed and considered during the
development of the plan and its recommendations.
OMB employed a methodology comprised of multiple approaches to develop
its plan, which resulted in recommendations and timeframes that the
agencies we met with consider feasible to implement. In developing the
plan, OMB officials conducted open meetings and focus groups with
federal agency acquisition personnel and established working groups of
agency officials who provided ongoing input and feedback. Agency
officials indicated to us that this involvement was valuable to the
planning process as it incorporated agency perspectives and has
facilitated their efforts to develop individual AHCPs. As a result,
officials from all of the agencies we met with said they expected to
submit their AHCPs by the plan's March 31, 2010 deadline.[Footnote 9]
However, in preparing their AHCPs, agency officials noted they have
faced challenges in identifying and capturing data on COTRs and P/PMs,
which may result in inconsistent data being reported. OMB experienced
a similar challenge in developing the plan, which resulted in the plan
only providing data on the contract specialist career field--the only
field for which data were consistently available from fiscal year 2000
through fiscal year 2008. While OMB is providing guidance to agencies
on the preparation and general format of the AHCPs, OMB officials are
looking to the agencies to develop AHCPs that best reflect their
individual acquisition workforce needs. As AHCPs are developed and
reviewed, OMB and the agencies plan to continually refine the
acquisition workforce planning process through subsequent years.
We provided a draft of this correspondence to OMB for its review and
comment. OMB provided technical comments that we incorporated into the
final version. Additionally, the nine agencies we met with were given
the opportunity to provide comments on a fact sheet containing
information from a draft of this correspondence. Seven of the agencies
had no comments on the information in the fact sheets and two agencies
provided technical comments that have been incorporated into this
correspondence.
Background:
The section 869 mandate included in the NDAA 2009[Footnote 10]
specifies that the Associate Administrator for Acquisition Workforce
Programs[Footnote 11] shall be responsible for the management,
oversight, and administration of the plan with the cooperation and
assistance of OFPP and FAI. According to OMB officials, OFPP serves as
the program manager and FAI is the executive agent for OFPP in this
workforce planning effort. As shown in table 1, the plan identifies
the respective roles and responsibilities for OMB/OFPP and FAI in
implementing the plan and assisting agencies with the development of
their AHCPs.
Table 1: Roles and Responsibilities under the Plan:
OMB, OFPP:
General roles and responsibilities:
* Lead the activities of the Chief Acquisition Officers Council
(CAOC), which advises the OFPP Administrator on acquisition workforce
issues;
* Establish qualification requirements for key acquisition positions;
* Direct the activities of FAI to support development of a
professional acquisition workforce;
AHCP roles and responsibilities:
* Issue guidance as necessary to support agency workforce planning;
* Provide a governance structure for implementing solutions;
* Review and measure agency progress in meeting capacity and
capability growth targets established in the AHCP.
FAI:
General roles and responsibilities:
* Collect and analyze workforce data and periodically analyze career
fields to identify critical skills and knowledge;
* Evaluate the effectiveness of training and career development
programs for acquisition personnel;
* Facilitate development and assessment of interagency intern and
training programs;
* Facilitate rotational assignments;
AHCP roles and responsibilities:
* Facilitate implementation of strategic human capital initiatives
identified in OMB's plan;
* Collaborate with agencies in developing acquisition workforce
recommendations for annual governmentwide human capital initiatives;
* Assist OFPP with its AHCP roles and responsibilities.
Source: OMB.
[End of table]
A primary component of OMB's plan is agency submission of AHCPs
beginning with the fiscal year 2012 budget cycle. The first round of
AHCPs were due by March 31, 2010, and civilian agencies will submit
them annually thereafter as a part of the agency's budget preparation.
To ensure the process is coordinated at the highest level at each
agency, agency chief acquisition officers are to work with their chief
human capital officers, acquisition career managers, and chief
financial officers in the development of the AHCPs. They are to make a
number of strategic considerations in developing their AHCPs,
including previous acquisition program evaluations, the skills and
competencies of their current workforce as determined by FAI
competency surveys,[Footnote 12] and strategies to address various
workforce needs.
To assist agencies in preparing their AHCPs, OMB also directed FAI to
establish and manage a Web portal for workforce planning guidance and
best practices for civilian agencies. The portal allows OMB to track
issues that agencies raise throughout the process to be able to
address them now and over subsequent years. According to OMB and FAI
officials, personnel from across the acquisition workforce planning
community, including acquisition career managers and human capital
officers, use the portal as a dedicated forum to communicate with each
other and share their best practices and challenges.
OMB'S Plan Does Not Explicitly Address All Matters Specified In
Mandates:
OMB's plan for civilian agencies' acquisition workforce addresses
several, but not all, of the matters specified in section 869. While
OMB officials acknowledge that the plan does not explicitly address
all of the required matters, they believe that it nevertheless
provides a governmentwide framework for civilian agencies to conduct
agency-specific acquisition workforce planning. OMB's plan also does
not comprehensively address several additional matters GAO was
directed by Congress in section 834 to review but that OMB was not
specifically mandated to include in the plan. However, OMB officials
explained that many of these issues were considered during the
development of their plan and underpin the final plan and its
recommendations.
OMB's Plan Does Not Provide a Complete Discussion in Response to
Congressional Requirements:
OMB officials acknowledge that the October 2009 plan does not
explicitly address all six matters it was to include pursuant to
section 869. However, they explained that the plan is intended as a
framework under which federal agencies can produce agency-specific
plans to develop their acquisition workforce. As such, OMB officials
told us that while much of what they were mandated by section 869 to
include was analyzed and considered in the process of developing the
plan and its recommendations, they did not include all of it because
they did not believe such information was appropriate in a broader,
governmentwide plan. Below is a list of each of the matters outlined
in the section 869 mandate and a discussion of the extent to which the
plan reflects these matters.
1. The variety and complexity of acquisitions conducted by each
federal agency covered by the plan and the workforce needed to
effectively carry out such acquisitions. OMB's plan does not include
individual discussions about each civilian agency's acquisitions and
does not specify each agency's workforce needs to address those
acquisitions. Instead, the plan presents a general discussion of the
variety and complexity of acquisitions conducted by civilian agencies
over an 8-year period and general information about the acquisition
workforce needed to effectively manage those acquisitions. These
analyses were used to identify the mismatch between the increase in
acquisition spending and the number of contract specialists across the
federal government from 2000 through 2008. The plan also includes a
discussion of changes in the profile of the acquisition activity
across civilian agencies, all of which provide the basis for the
plan's conclusion that agencies must take steps to grow the size and
skills of their workforce. To that end, it specifies that in preparing
their AHCPs, agencies must consider their challenges and goals and
examine agency-specific data about volume, variety, and complexity of
their respective acquisition spending. However, according to OMB
officials, they decided not to include agency-specific data in the
final plan as they determined that a broader discussion of the
challenges faced across agencies was more appropriate for a
governmentwide plan.
2. The development of a sustainable funding model to support efforts
to hire, retain, and train an acquisition workforce of appropriate
size and skill to effectively carry out the acquisition programs of
the federal agencies covered by the plan, including an examination of
interagency funding methods and a discussion of how the model of the
Defense Acquisition Workforce Development Fund[Footnote 13] could be
applied to civilian agencies. OMB's plan outlines an acquisition
workforce planning development process that will be aligned with
agency budget submissions. OMB officials explained that since the
planning process will serve as a component of the agencies' budget
preparation, it provides a basis for sustainable funding to address
the growth and development needs of the acquisition workforce. They
further explained that senior agency officials will now make
acquisition workforce planning a priority because it is an explicit
part of the budget process. The plan indicates that OMB will evaluate
budgetary needs and sustainable funding needs based on information
submitted by agencies about strengthening their acquisition workforce.
OMB officials explained that, leading up to issuance of the
President's Budget, OFPP personnel will work with OMB resource
management offices to review those needs and agency plans and progress
in addressing them. Through this coordination process, the officials
explained, OMB will be able to identify the extent to which agencies
are keeping acquisition workforce planning a priority and tailor
funding and support according to the information agencies report
annually with their budget submissions. Provided that agency budget
requests are justified by their AHCPs and discussions with OMB and
that these requests are ultimately funded, the plan creates a basis
for sustainable funding.
The plan does not include an examination of interagency funding
methods or a discussion of the applicability of the Defense
Acquisition Workforce Development Fund model to civilian agencies. OMB
officials said that they considered the applicability of an
interagency fund or fund similar to the Defense Acquisition Workforce
Development Fund for the civilian acquisition workforce during its
development of the plan. However, they believed that such a funding
model would be too difficult to apply across diverse agencies with
varied missions and workforce skill sets. This opinion was shared by
officials from the agencies we met with. Some agency officials
specifically expressed concerns that an interagency fund would require
them to contribute scarce dollars to support development of a
workforce that may not be tailored to meet the specific, technical
skills required at their agency. In contrast, they indicated that
through the process set up in the plan they expected to receive
ongoing funding support for their efforts to develop the acquisition
workforce.
3. Any strategic human capital planning necessary to hire, retain, and
train an acquisition workforce of appropriate size and skill at each
federal agency covered by the plan. The plan discusses annual
strategic workforce planning and the need to coordinate efforts to
address recruitment, retention, and training of the acquisition
workforce across federal agencies but does not discuss these issues on
an agency-by-agency basis. In the plan, OMB notes that prior to this
effort, no common planning effort for acquisition workforce needs
existed across agencies, with the exception of an annual agency
reporting requirement to OPM on the contract specialist occupation.
The plan outlines specific roles and responsibilities for various
organizations and officials in this coordinated acquisition workforce
effort. According to the plan, acquisition workforce planning will
hinge on agency production of AHCPs, which are to consider a number of
items, including: the skills and competencies of the current workforce
and gap closure strategies to address development needs, attrition
rates, or other workforce needs. OMB describes the plan as a 5-year
action plan to meet the objective of building an acquisition workforce
of appropriate size and skill at each federal agency. OMB officials
also noted that they set up Functional Advisory Boards led and staffed
by agency representatives to provide input into strategic human
capital planning processes both within agencies and governmentwide to
help coordinate this workforce development effort.
4. Methodologies that federal agencies covered by the plan can use to
project future acquisition workforce personnel hiring requirements,
including an appropriate distribution of such personnel across each
category of positions designated as acquisition workforce personnel
under section 37(j) of the Office of Federal Procurement Policy Act
(41 U.S.C. 433(j)).[Footnote 14] OMB's plan does not identify specific
methodologies for agencies to employ to project acquisition hiring
needs and the distribution of the workforce. The plan states that no
simple projection formula can be used to relate the size and
composition of an agency's acquisition activity to its ideal workforce
size. The plan identifies areas such as the trade-off between the
costs associated with hiring personnel and the potential savings that
may come from better acquisition management where agencies should look
to target improvements of their workforce. OMB officials explained
that there is great difficulty in developing a single projection
formula that would be applicable across all agencies given differences
in their missions, acquisition workforces, types of acquisitions, and
existing acquisition processes. These factors affect how an agency is
going to develop a target acquisition workforce profile and project
its workforce needs. Furthermore, the officials explained, planning
and projection methodologies change over time as other factors within
the acquisition workforce change. However, the plan stated that FAI
would maintain an online toolkit, which would include various
projection methodologies, for the agencies to use in conducting their
workforce analyses. OMB and FAI officials informed us that the Web
portal created by FAI contains several different projection
methodologies. Agency personnel can access the portal and determine
the most appropriate methodology given their specific acquisitions and
workforce.
5. Government-wide training standards and certification requirements
necessary to enhance the mobility and career opportunities of the
federal acquisition workforce within the federal agencies covered by
the plan. OMB's plan addresses training and certification issues
extensively, including specific discussions on the use of intern
programs, refinement of competency focus areas for specific training,
and updating certifications. The plan states that the variety and
complexity of civilian agency acquisitions, results of recent
competency surveys, and consultations with civilian agency officials
led to the identification of three areas to target improved workforce
capability: (1) expanding the use of intern programs, (2) improving
the federal acquisition certification programs, and (3) targeting
training to workforce needs.
The plan identifies four agencies that employ intern programs for
acquisition personnel and describes efforts by OMB to communicate best
practices from these agencies and to develop a governmentwide intern
program which, among other things, provides for rotational
opportunities for enrollees. We spoke with officials from the four
agencies identified in the plan and all indicated that their intern
programs are a centerpiece to their recruitment and retention efforts.
The plan also states that OMB and FAI are charged with making
appropriate changes to training and curricula and updating
certification programs based on advice received from interagency
working groups. The plan notes that governmentwide certification
programs need to be updated to reflect current needs and priorities in
the acquisition workforce. Over the plan's implementation period, OMB
and FAI plan to refine the curriculum for the contracting officer,
contract specialist, COTR, and P/PM certifications. Specifically, they
will work with federal training providers to develop formal training
opportunities that address competency needs for individuals working as
contracting officers, contract specialists, COTRs and P/PMs. For
example, over the next 2 years, the plan states that FAI will offer
additional learning seminars, on-line courses, and other performance
support tools to promote learning and performance. The plan also
identifies the use of high-level, interagency working groups to
identify training curriculum needs and competency areas for better
targeted training, such as cost/price analysis. According to OMB
officials, these groups are working on developing training that
specifically addresses competency gaps in the acquisition workforce
and are also targeting recruitment efforts to certain demographics,
such as mid-career hires.
6. If the Associate Administrator recommends as part of the plan a
growth in the acquisition workforce of the federal agencies covered by
the plan below 25 percent over the next 5 years, an examination of
each of the matters specified in paragraphs (1) through (5) in the
context of a 5-year plan that increases the size of such an
acquisition workforce by not less than 25 percent, or an explanation
why such a level of growth would not be in the best interest of the
federal government. OMB's plan does not specifically address growth of
25 percent--either supporting it or justifying why it is not
necessary. OMB conducted extensive data analyses that led to a
conclusion that growth in the acquisition workforce of at least 5
percent was appropriate across federal civilian agencies. However, the
plan does not specify a time frame for that 5 percent growth. OMB
officials told us that the 5 percent growth discussed in the plan is
for fiscal year 2011. They explained that they did not project a
growth factor over the next 5 years based on their governmentwide
analysis of acquisition workforce growth in fiscal years 2008 and
2009. They also noted that the factor needs to remain flexible and
would likely be adjusted based on the AHCPs. They conducted data
analyses at each individual agency and across the government to
determine that 5 percent growth for fiscal year 2011was a good
starting point and was realistic given the need for agencies to
integrate new personnel into the workforce, rather than just adding
them into the workforce. Agencies with whom we spoke are basing the
analysis in their AHCPs on a 5 percent growth factor for fiscal year
2011. As with OMB, agency officials expressed uncertainty as to what
the growth factor would be in future years but that it would be
determined through their planning processes.
OMB's Plan Does Not Comprehensively Address All Additional Elements
GAO Was Mandated to Review, but OMB Officials Said They Considered
These Issues:
OMB's plan does not appear to comprehensively address several of the
additional matters that GAO was mandated to review but that OMB was
not specifically mandated to include in the plan. While OMB officials
said they considered these matters during the development of the plan
and its recommendations, they are not fully discussed in the plan
itself and we could not verify the extent to which OMB did consider
them in development of the plan. Below is a list of each of the
matters and a discussion of the extent to which the plan considered
each of them.
1. The extent to which the Acquisition Workforce Development Strategic
Plan addresses previously identified shortcomings in the acquisition
workforce and prior efforts by agencies to develop acquisition
workforce plans, including strategies used to identify and hire
acquisition personnel. The plan discusses many previously identified
shortcomings in the acquisition workforce from prior organizations'
reports. Specifically, it cites findings from FAI's 2008 Annual Report
and Acquisition Workforce Competency Survey, which identifies
competency weaknesses across the acquisition workforce and lack of
ability to complete work. For instance, FAI reported that the
acquisition workforce spends less time on important acquisition
processes such as requirements development, market research, and
contract administration. FAI also found that over half of the
acquisition workforce will be eligible to retire between now and
fiscal year 2018, creating a critical need to develop expertise to
replace personnel that choose to retire. The plan also refers to GAO
and Merit Systems Protection Board (MSPB) reports that found that
better workforce planning is needed to improve acquisition. It cited
several studies indicating that training, recruitment, and retention
of the workforce managers remains a low priority. The plan refers
specifically to the Services Acquisition Reform Act (SARA) Acquisition
Advisory Panel and the MSPB report on COTRs to identify the common
shortcomings and prior efforts. Several common themes emerged from the
MSPB review, including concerns about entry-level hiring, funding, and
training and certification standards for COTRs.
OMB's plan, however, does not identify specific prior efforts by
agencies to develop acquisition workforce plans. It only notes the
fact that agencies have to submit annual reports to OPM on the
contract specialist series and that agency Chief Administrative
Officers have workforce planning responsibilities, but those efforts
have been largely unstructured and uncoordinated. OMB officials told
us that they also interviewed agency officials about prior assessments
of their acquisition workforces and took the shortcomings that they
identified into consideration when developing the plan. They explained
that they looked at government acquisition shortcomings in general,
not just the shortcomings of the workforce, from reports published by
the Acquisition Advisory Council, MSPB, and GAO. According to OMB
officials, they believe there is a clear link from past efforts and
lessons learned that informed the plan even though specific efforts
are not mentioned specifically in the plan.
2. The extent to which the Acquisition Workforce Development Strategic
Plan considered the use by agencies of contractor personnel to
supplement the acquisition workforce.[Footnote 15] Except for a short
acknowledgment that agencies use contractors to address shortages in
their acquisition workforce and how this may diminish an agency's core
acquisition capability, the plan does not otherwise mention the role
or impact of contractors supplementing the government acquisition
workforce. According to OMB officials, they considered agencies' use
of contractor personnel when they looked at acquisitions' shortcomings
in general, including the issue of whether contractors are performing
"inherently governmental"[Footnote 16] functions and agencies' over-
reliance on contractors. However, for purposes of this plan, the
officials explained that they focused on federal employees, rather
than addressing contractors as part of the acquisition workforce.
While the plan does not address contractors supplementing the
acquisition workforce, OMB officials noted that there are a number of
other administration initiatives related to the role of contractors.
For example, in July 2009, OMB issued Policy Letter M-09-26 regarding
the management of the multisector workforce, which includes government
employees and contractors. The letter directed the agencies to conduct
a pilot human capital analysis of at least one program to identify,
among other matters, the optimal mix of government employees and
contractors in their workforce. According to OMB, seven agencies chose
to conduct the pilot on their acquisition workforce and as part of
that effort, are examining the role of contractors in supporting the
acquisition function.
3. Whether the Acquisition Workforce Development Strategic Plan
considered the full range of laws, regulations, and policies that
currently apply to the acquisition workforce. While many of the laws,
regulations, and policies that apply to the acquisition workforce were
not mentioned in the plan, OMB officials said they had knowledge of
and considered the full range of laws, regulations, and policies that
apply to the acquisition workforce during the plan's development. They
explained that it would have been impossible to develop an actionable
and legal plan without consideration of all laws, regulations, and
policies that apply to the acquisition workforce, but they determined
it was not useful to describe how those laws, regulations, and
policies are applicable in the plan. For instance, the plan cites
recent OMB policy letters on government contracting and the
acquisition workforce, including OMB M-09-25 and M-09-26, and states
that the agencies should consider these policies as they develop their
individual plans. The plan discusses the OFPP Policy Letter 05-01 and
the Acquisition Career Manager Guidebook in regard to expanding and
streamlining the responsibilities and authorities of each agency's
acquisition career manager, given their role in developing the
acquisition workforce.
OMB officials told us that other laws that were not cited by name were
considered as the plan was developed. For example, OMB officials
explained that they had to consider the Federal Acquisition Reform
Act, which identifies a number of general requirements that agencies
must consider with respect to managing their acquisition workforce
personnel. Similarly, OMB officials said they considered the Federal
Acquisition Streamlining Act and SARA, both of which affect how
federal acquisition personnel conduct their work.
4. The extent to which the Acquisition Workforce Development Strategic
Plan considered the specific training and retention tools (whether
located within or outside an agency) used to professionally develop
and retain acquisition personnel, including the following:
a. The Defense Acquisition University;[Footnote 17]
b. The Federal Acquisition Institute;
c. Continuing education and professional development opportunities
available to acquisition professionals;
d. Opportunities to pursue higher education available to acquisition
personnel, including scholarships and student loan forgiveness.
The plan addresses training and retention tools extensively, including
a discussion of expanding the use of intern programs, improving
federal acquisition certification programs, and targeting training to
workforce needs. The plan states that intern programs can be an
effective recruitment tool and identifies four civilian agencies'
successful use of intern programs as a recruitment and retention tool.
Our discussions with officials at these agencies verified that
internship programming was a focus of their acquisition workforce
development efforts. The plan also mentions the Department of the
Interior's governmentwide intern program in which all agencies may
participate. That program currently has participants from four
agencies outside of Interior. The plan states that other agencies can
leverage the experiences from these programs to facilitate better
programming and interagency relationships, including focusing training
and development programs not only on entry-level personnel but also
tailoring them to meet the needs of mid-career hires and senior-level
acquisition personnel.
The plan states that FAI has a partnership with the Defense
Acquisition University (DAU) and will collaborate with that
organization to leverage resources and provide training for the
acquisition workforce. The plan identifies the need to bring civilian
training up to the same standard as DOD training and OMB officials
specifically pointed to the need to strengthen COTR training and
certification standards as part of this effort. The plan states that,
working with DAU, FAI will expand courses to address areas identified
as competency gaps, such as requirements definition and negotiations.
It also focuses on the need to increase FAI training for acquisition
personnel, including positions other than just contracting
specialists. OMB utilized existing infrastructure, including the
working advisory boards and the Chief Acquisition Officer's Council to
inform the section of the plan on training and certifications.
OMB's plan does not include a discussion of opportunities for
acquisition personnel to pursue higher education or incentives for
those individuals to pursue such opportunities.
Despite Data Challenges, OMB and Civilian Agencies Are Working
Together to Implement the Plan's Recommendations:
The methodology OMB employed to develop its plan resulted in
recommendations and time frames that the agencies we met with consider
feasible to implement. The methodology consisted of multiple
approaches, including a review of relevant literature, data analyses
and meetings with civilian agency personnel. Both the civilian agency
officials and OMB officials with whom we met noted that COTRs and
P/PMs occupy numerous occupational series within the federal
workforce. Because the positions are not specifically coded as
"acquisition" positions in civilian agency workforce databases,
officials face challenges in identifying them for acquisition
workforce reporting purposes. While OMB is providing guidance to
agencies on the preparation and general format of the AHCPs, OMB
officials are looking to the agencies to develop AHCPs that best
reflect their individual acquisition workforce needs. Officials from
the agencies and OMB both noted that as AHCPs are developed and
reviewed they will continually refine the acquisition workforce
planning process for subsequent years.
OMB Employed a Multipronged Methodology:
Specifically, OMB officials told us that they undertook a methodology
comprised of four approaches to develop the plan and its
recommendations.
* Literature review. OMB officials reviewed various commissioned
studies, GAO reports, MSPB reports, and independent analyses to
collect general knowledge and identify common themes across federal
agencies. For example, the plan cites prior studies that indicate the
need for better workforce planning as federal agencies lack processes
to support strategic human capital planning for their acquisition
workforce. They also conducted interviews with the authors of various
academic, government, and private sector studies to garner a deeper
understanding of the authors' findings.
* Original data analysis. For the data analyses underpinning the plan
and its recommendations, OMB officials said they relied on data
primarily from the Federal Procurement Data System-Next Generation
(FPDS-NG)[Footnote 18] to conduct analyses of various contract
matters, such as spending amounts by contract type and by contracting
officer at each agency. Even though OMB relied on FPDS-NG, officials
acknowledged that the data from that system have limitations.
* Secondary data analysis. Additionally, OMB officials relied on
statistical planning analyses conducted by the Bureau of Labor
Statistics to identify acquisition workforce trends and projections of
future workforce needs. Similarly, OMB officials said they received
civilian personnel data from OPM on the demographics of the contract
officer/specialist career field at each agency. The officials said
they also used data and findings provided in FAI's competency surveys,
which brought a great deal of breadth and depth to their analysis
because they could look, for the first time, at what people in the
acquisition workforce are actually spending their time doing. They
noted that these analyses underpinned OMB's determination of how much
workforce growth was needed across agencies.
* Meetings with agency officials. According to OMB officials, one of
the biggest contributors to their methodology was the use of working
groups comprised of personnel from various civilian agencies. These
groups were set up to promote engagement among the various officials
needed in the planning effort and to focus on specific issues within
the acquisition workforce, such as the role of COTRs and how to
facilitate an interagency internship program. Additionally, OMB
officials explained that they conducted individual interviews with
civilian agency acquisition personnel about their acquisition planning.
OMB's methodology relied on a definition of acquisition workforce that
included contract specialists, COTRs, and P/PMs. OMB collected
civilian personnel data from OPM to identify the number of contract
specialists in the acquisition workforce. These data were easily
accessible because contract specialists are a specified federal career
field. However, COTR and P/PM designations are not specified career
fields and do not have a governmentwide identifying factor like a
contract warrant, so they are not separately tracked in databases. As
a result, the plan only presents an analysis of trends for contract
specialists as opposed to the entire civilian agency acquisition
workforce. OMB officials told us they are relying on agencies to
identify COTRs and P/PMs and account for them in their AHCPs. Civilian
agency officials did note that it was helpful that OMB provided a
template and associated guidance to them to clarify what data OMB
wanted them to submit for their AHCPs.
Recommendations and Time frames Developed under OMB's Plan Viewed as
Feasible by Implementing Agencies:
Officials at the federal civilian agencies we spoke with stated that
the recommendations and time frames in OMB's plan are feasible and
that they are likely to submit their AHCPs to OMB by the March 31,
2010, deadline. Many civilian agency officials with whom we met stated
that it would have been helpful to have more time to prepare their
plans, particularly to gather and refine data on COTRs and P/PMs for
inclusion in their plans. Most agencies felt that the plan was a good
first attempt at increasing the acquisition workforce and that OMB has
been supportive to agencies that needed assistance in their planning
efforts and in developing AHCPs. In previous years, agencies requested
additional funding to support growth in their acquisition workforce,
but that funding was not subsequently approved. As a result, one
concern some agencies had with this initiative was corresponding
budgetary support. However, OMB officials believe that agencies are
optimistic about this current effort because the administration
specifically included funding in the President's fiscal year 2011
budget request to support the development of the acquisition workforce.
Most of the officials at the civilian agencies we talked to stated
that one of the biggest challenges in developing their plans was
determining who to include in their acquisition workforce, given the
broad definition provided by OMB in its plan. For example, one agency
was unsure about whether to include individuals that hold purchase
cards since those individuals have acquisition authority but do not
have contract warrants. Alternatively, some agencies are including a
wide variety of career fields in their workforce numbers beyond just
those identified by OMB in its plan, such as system engineers and
logisticians in the case of one agency. Additionally, several, but not
all, agencies expressed familiarity with the same challenge OMB had
with capturing the COTR and P/PM designations in their workforce data.
Agency officials stated that they do not have a specific identifying
factor for people serving as COTRs or P/PMs and that COTRs, in
particular, often serve in that role as a collateral or other duty in
addition to their primary responsibilities. These variances across
agency interpretations will likely translate into data inconsistencies
across agency AHCPs.
OMB is aware of the challenges agencies are facing with regard to
identifying and capturing data on their entire acquisition workforce.
OMB officials explained that they expect to continue working with
agencies through established workshops and information sharing to help
clarify some of these issues, especially through use of FAI's Web
portal. These discussions will continue after agencies submit their
AHCPs, but OMB officials believe that the point at which agencies
submit their first AHCPs will serve as a good opportunity to assess
the effects of data challenges and how to move forward to effectively
address them.
Concluding Observations:
While OMB's plan does not address all statutory matters, it
nevertheless has initiated a process that provides an opportunity to
increase the capacity and capability of the civilian agencies'
acquisition workforce. As agencies submit their AHCPs and they are
reviewed by OMB to inform budgetary decisions, issues such as defining
and obtaining data on the entire acquisition workforce, which includes
contractors who support acquisition functions, will become
increasingly important and may warrant clarification. Additionally,
through subsequent years, the results of the process established in
OMB's plan will become evident, including how well it identifies gaps
and responds to critical needs in the civilian acquisition workforce
and the sustainability of funding for the effort. The ability of OMB
and the agencies to address issues that need refinement and ultimately
achieve the intended outcomes of the plan will depend on their
sustained collaboration and commitment to developing the acquisition
workforce.
We are sending copies of this report to the Directors of OMB and OPM;
the Secretaries of Energy, the Interior, Homeland Security, Commerce,
and Veterans Affairs; the Administrators of the General Services
Administration and NASA; the Director of the Pension Benefit Guaranty
Corporation; the Chair of the Small Agency Council; and interested
congressional committees. In addition, the report will be available at
no charge on GAO's Web site at [hyperlink, http://www.gao.gov].
If you or your staff have any questions concerning this report, please
contact me at (202)-512-4841. Contact points for our Offices of
Congressional Relations and Public Affairs may be found on the last
page of this report. Key contributors to this report include Johana R.
Ayers, Assistant Director; Brendan Culley; Morgan Delaney Ramaker;
John Krump; Kenneth Patton; and Desirée Thorp.
Signed by:
John K. Needham:
Director, Acquisition and Sourcing Management:
List of Committees:
The Honorable Carl Levin:
Chairman:
The Honorable John McCain:
Ranking Member:
Committee on Armed Services:
United States Senate:
The Honorable Joseph I. Lieberman:
Chairman:
The Honorable Susan M. Collins:
Ranking Member:
Committee on Homeland Security and Government Affairs:
United States Senate:
The Honorable Ike Skelton:
Chairman:
The Honorable Howard P. "Buck" McKeon:
Ranking Member:
Committee on Armed Services:
House of Representatives:
The Honorable Edolphus Towns:
Chairman:
The Honorable Darrell Issa:
Ranking Member:
Committee on Oversight and Government Reform:
House of Representatives:
[End of section]
Appendix I: Matters Specified in OMB Acquisition Workforce Plan
Mandates for OMB and GAO:
Duncan Hunter National Defense Authorization Act for Fiscal Year 2009
Pub. L. No 110-417, § 869 (c) (2008):
The Acquisition Workforce Development Strategic Plan shall include, at
a minimum, an examination of the following matters:
(1) The variety and complexity of acquisitions conducted by each
federal agency covered by the plan and the workforce needed to
effectively carry out such acquisitions.
(2) The development of a sustainable funding model to support efforts
to hire, retain, and train an acquisition workforce of appropriate
size and skill to effectively carry out the acquisition programs of
the federal agencies covered by the plan, including an examination of
interagency funding methods and a discussion of how the model of the
Defense Acquisition Workforce Development Fund could be applied to
civilian agencies.
(3) Any strategic human capital planning necessary to hire, retain and
train an acquisition workforce of appropriate size and skill at each
federal agency covered by the plan.
(4) Methodologies that federal agencies covered by the plan can use to
project future acquisition workforce personnel hiring requirements,
including an appropriate distribution of such personnel across each
category of positions designated as acquisition workforce personnel
under section 37(j) of the Office of Federal Procurement Policy Act
(41 U.S.C. 433(j).
(5) Government-wide training standards and certification requirements
necessary to enhance the mobility and career opportunities of the
federal acquisition workforce within the federal agencies covered by
the plan.
(6) If the Associate Administrator recommends as part of the plan a
growth in the acquisition workforce of the federal agencies covered by
the plan below 25 percent over the next 5 years, an examination of
each of the matters specified in paragraphs (1) through (5) in the
context of a 5-year plan that increases the size of such an
acquisition workforce by not less than 25 percent, or an explanation
why such a level of growth would not be in the best interest of the
federal government.
National Defense Authorization Act for Fiscal Year 2010, Pub. L. 111-
84 § 834 (b) (2009):
The Comptroller General of the United States shall submit a report on
the plan and shall include assessments of the following:
(1) The methodologies used to formulate the Acquisition Workforce
Development Strategic Plan and its recommendations.
(2) The extent to which the Acquisition Workforce Development
Strategic Plan addresses previously identified shortcomings in the
acquisition workforce and prior efforts by agencies to develop
acquisition workforce plans, including strategies used to identify and
hire acquisition personnel.
(3) The feasibility of the Acquisition Workforce Development Strategic
Plan's recommendations and associated time frames for implementation,
particularly as they relate to the development of a sustainable
funding model and the applicability of the Defense Acquisition
Workforce Development Fund model to civilian agencies.
(4) The extent to which the Acquisition Workforce Development
Strategic Plan considered the use by agencies of contractor personnel
to supplement the acquisition workforce.
(5) Whether the Acquisition Workforce Development Strategic Plan
considered the full range of laws, regulations, and policies that
currently apply to the acquisition workforce.
(6) The extent to which the Acquisition Workforce Development
Strategic Plan considered the specific training and retention tools
(whether located within or outside an agency) used to professionally
develop and retain acquisition personnel, including the following: a.
The Defense Acquisition University; b. The Federal Acquisition
Institute; c. Continuing education and professional development
opportunities available to acquisition professionals; d. Opportunities
to pursue higher education available to acquisition personnel,
including scholarships and student loan forgiveness.
(7) Such other matters, findings, and recommendations as the
Comptroller General considers appropriate.
[End of section]
Footnotes:
[1] Presidential Documents, 74 Fed. Reg. 9755 (Mar. 6, 2009).
[2] Duncan Hunter National Defense Authorization Act for Fiscal Year
2009, Pub. L. No 110-417, § 869 (2008).
[3] OFPP Memorandum, Subject: Acquisition Workforce Development
Strategic Plan for Civilian Agencies - FY 2010 - 2014 (Oct. 27, 2009).
[4] The Office of Federal Procurement Policy (OFPP) defines the
acquisition workforce as including individuals who perform various
acquisition-related functions to support the accomplishment of an
agency's mission. At a minimum, this includes all positions in the
General Schedule contracting series, all contracting officers, all
positions in the general schedule purchasing series, P/PMs as
identified by each agency, all contracting officer's representatives
(CORs) and COTRs, and any significant acquisition-related positions
identified by the agency. OFPP Policy Letter 05-01, Developing and
Managing the Acquisition Workforce (Apr. 15, 2005).
[5] Chief Financial Officers Act of 1990, Pub. L. 101-576 (1990).
[6] National Defense Authorization Act for Fiscal Year 2010, Pub. L.
111-84, § 834(b) (2009).
[7] Established in 1976 under the Office of Federal Procurement Policy
Act, the Federal Acquisition Institute (FAI) has been charged with
fostering and promoting the development of a federal acquisition
workforce. FAI facilitates and promotes career development and
strategic human capital management for the acquisition workforce and
seeks to ensure availability of training, provide research, promote
professionalism, and improve acquisition workforce management.
According to OMB officials FAI is the executive agent of OFPP for
purposes of implementing OMB's plan. Office of Federal Procurement
Policy Act, Pub. L. 93-400 (1974).
[8] We selected the following federal agencies: Department of Energy,
Department of Homeland Security, National Aeronautics and Space
Administration, Department of Veterans Affairs, Department of the
Interior, Department of Commerce, General Services Administration,
Office of Personnel Management, and the Pension Benefit Guaranty
Corporation. Collectively, these agencies accounted for more than 61
percent of civilian agency contract obligations in fiscal year 2009.
[9] According to OMB, as of April 19, 2010, the majority of agencies
required to submit AHCPs have done so and OMB is working with the
remaining agencies regarding their submissions.
[10] Pub. L. No 110-417, § 869(b).
[11] The National Defense Authorization Act for Fiscal Year 2008
states that the Administrator for Federal Procurement Policy shall
designate a member of the Senior Executive Service as the Associate
Administrator for Acquisition Workforce Programs. National Defense
Authorization Act for Fiscal Year 2008, Pub. L. 110-181, § 855(a).
[12] FAI's most recent competency surveys were administered from July
through October 2008 for civilian agencies in the executive branch.
[13] The Defense Acquisition Workforce Development Fund was
established under section 852 of the National Defense Authorization
Act for Fiscal Year 2008. It was created to provide funds for the
recruitment, training, and retention of acquisition personnel of the
Department of Defense from remitted amounts from military departments
and defense agencies. National Defense Authorization Act for Fiscal
Year 2008, Pub. L. 110-181, § 852.
[14] The act states that the Administrator of Federal Procurement
Policy shall establish qualification requirements, including education
requirements, for the following positions: (1) entry-level positions
in the General Schedule Contracting series (GS-1102); (2) senior
positions in the General Schedule Contracting series (GS-1102); (3)
all positions in the General Schedule Purchasing series (GS-1105); and
(4) positions in other General Schedule series in which significant
acquisition-related functions are performed. 41 U.S.C. § 433(g).
[15] Our prior work has found that agencies should develop acquisition
workforce strategies that include contractors who are supporting
agencies' acquisition functions. See GAO, Department of Homeland
Security: A Strategic Approach Is Needed to Better Ensure the
Acquisition Workforce Can Meet Mission Needs, [hyperlink,
http://www.gao.gov/products/GAO-09-30] (Washington, D.C.: Nov. 19,
2008) and GAO, Department of Defense: Additional Actions and Data Are
Needed to Effectively Manage and Oversee DOD's Acquisition Workforce,
[hyperlink, http://www.gao.gov/products/GAO-09-342] (Washington, D.C.:
Mar. 5, 2009).
[16] OFPP published Policy Letter 93-1 to assist executive branch
officers and employees to avoid an unacceptable transfer of official
responsibility to government contractors because not all functions may
be performed by a contractor. An "inherently governmental" function is
a function that is so intimately related to the public interest as to
mandate performance by government employees. OFPP Policy Letter 93-1,
Para. 7, Management Oversight of Service Contracts (May 18, 1994).
[17] The Defense Acquisition University was established to provide for
the professional educational development and training of the
Department of Defense acquisition workforce. National Defense
Authorization Act for Fiscal Year 1991, Pub. L. 101-510, § 1767 (1990).
[18] FPDS-NG is a data system where federal agencies report contracts
whose estimated value is $3,000 or more. Every modification to those
contracts, regardless of dollar value, is reported to FPDS-NG. It
provides information on government contracting actions, procurement
trends, and achievement of socioeconomic goals, such as small business
participation.
[End of section]
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